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Cracking the Accountability Code

May 21, 2024 By Patti Cotton Leave a Comment

Most executives in charge will find that accountability eludes them. In an effort to get things done, a senior executive may create a culture that is severe and unforgiving, with employees being terminated in rapid fashion. The executive hopes that different people will perform better than the ones dismissed – in most cases, faulty thinking.

Another senior executive will develop a soft culture, thinking that accountability is harsh – again, faulty thinking. This results in people at top levels chasing, babysitting, or actually doing the work of others in order to ensure that things get done.

Those who remain staunch in wanting to crack the accountability code will purchase expensive people management systems that ultimately may not work because of other factors. This kind of system focuses on just one of the three building blocks needed to reach healthy accountability.

The Three Building Blocks of Healthy Accountability

Leadership Development.
Performance Management
Risk Governance

When carefully orchestrated, integrating these three building blocks will make a significant difference in a company’s sustainability, profit, and growth trajectory. On a more personal level, it supports the executive’s cognitive and emotional capacity, which means the executive will enjoy less stress, have a greater ability to think strategically, focus on what matters, make better decisions, and model and develop her people.

Let’s examine each building block and see how it plays out in business scenarios.

(Note: No matter what the size of your company, these three building blocks are still valid and necessary!)

Leadership Development

Executives will need to shift their leadership style from traditional command-and-control to more empowering and coaching roles.

This involves:

Fostering empathy, compassion, and vulnerability.
Building psychological safety to encourage innovation and problem-solving.
Acting as a coach to facilitate constant learning and skill development among employees.

Leadership Development in Action: Elysian Enterprises

At Elysian Enterprises, CEO Sarah Jones noticed that her team’s creativity and problem-solving capabilities were stagnating under the traditional command-and-control leadership model she had inherited.

To begin addressing this, she embarked on making the shift to a more empowering leadership approach.

Empathy and Compassion: Sarah began by instituting regular one-on-one meetings with her team members, aimed at understanding their personal and professional challenges. This shift was inspired by a practice at Google, where managers are trained to start meetings with personal check-ins, enhancing team cohesion and emotional safety.
Psychological Safety: To cultivate an environment where employees felt safe to express ideas and concerns, Sarah introduced a ‘no blame’ policy for failed projects, focusing instead on learning from mistakes. This mirrors practices at companies like Pixar, where ‘brain trust’ sessions are held, allowing creative teams to present ideas without fear of criticism or repercussions.
Coaching Instead of Controlling: Transitioning from a director to a coach, Sarah facilitated workshops and provided resources for continuous learning. Inspired by the coaching culture at Microsoft under CEO Satya Nadella, she focused on growth mindset training, significantly enhancing her team’s adaptability and innovation.

Performance Management

Effective performance management is crucial for holding people accountable. This includes:

Setting clear, challenging yet achievable targets.
Ensuring transparency in how these targets align with the company’s overall objectives.
Maintaining open communication about performance, where metrics are actively discussed and not just passively reported.
Instituting appropriate rewards and consequences to reinforce the importance of meeting targets.

Performance Management in Action: Orion Industries

At Orion Industries, CEO Mark Liu faced issues with underperformance and unclear accountability.

He overhauled the performance management system to align individual goals with corporate strategy.

Setting Relevant Targets: Mark introduced a system where targets were co-developed with employees, ensuring they were challenging yet attainable. This was similar to the approach at Intel with OKRs (Objectives and Key Results), where ambitious and transparent goal setting is standard practice.
Transparency and Communication: To improve transparency, Mark implemented a dashboard visible to all employees, showing real-time data on performance relative to targets, akin to Salesforce’s use of similar dashboards to drive sales performance.
Rewards and Consequences: Recognizing the power of incentives, Mark revamped the reward system to include both financial bonuses and recognition programs, such as ‘Employee of the Month’, which not only rewarded results but also behaviors aligned with the company’s values.

Risk Governance

Robust risk management systems help ensure accountability at all levels of an organization by:

Establishing a clear risk governance framework that defines roles and responsibilities across the organization.
Implementing comprehensive controls and regular stress tests to manage financial, operational, and strategic risks.
Encouraging a culture where risk-aware decision-making is valued and practiced by all employees.

Risk Governance in Action: Proteus Corp

At Proteus Corp, a multinational company with diverse operations, CEO Linda Zhu strengthened the company’s risk management framework after a major data breach.

Clear Risk Governance Framework: Linda established a dedicated risk committee that reported directly to the board, ensuring high-level oversight and accountability. This mirrored the approach of banks like JPMorgan Chase, which have robust governance structures in place to oversee various types of risks.
Comprehensive Controls and Regular Stress Tests: Proteus Corp implemented regular IT system checks and scenario planning exercises to assess the impact of potential threats, similar to stress testing done by financial institutions as required by regulations like the Dodd-Frank Act.
Culture of Risk Awareness: Linda fostered a culture where every employee was trained to recognize and report potential risks, much like the safety culture at airlines like Southwest, where employees at all levels are encouraged to report safety concerns without fear of retribution.

Together, these steps form a comprehensive approach that a chief executive can use to build a culture of accountability and resilience that supports both individual and organizational growth.

In the next article, I’ll share why top executives still won’t delegate – and if you are one or are supervising one, what you can do to shift this.

© Patti Cotton and patticotton.com. All rights reserved. Unauthorized use and/or duplication of this material without express written permission from the author is strictly prohibited. Excerpts and links may be used, provided that attribution is made to Patti Cotton and patticotton.com, with links thereto.

Patti Cotton

Patti Cotton reenergizes talented leaders and their teams to achieve fulfillment and extraordinary results. For more information on how Patti Cotton can help you and your organization, click here.

The Neuroscience of Leadership: The Power of Emotional Agility

May 7, 2024 By Patti Cotton Leave a Comment

As you navigate the intricate paths of leadership, it is important to note that cognitive agility is indispensable (see previous article). This ability to flex deftly with thinking allows leaders to pivot swiftly, grasp complexities, and address challenges with creativity and insight.

However, without its strategic partner, emotional agility, even the sharpest cognitive dexterity can falter, leading to poor decision-making, strained team relationships, and a lack of vision.

Imagine a pilot flying a plane with only one working engine. The aircraft might still stay airborne for a while, but the lack of full power severely limits its maneuverability and ability to reach its destination safely. Moreover, reaching the intended destination is now at significant risk – and the mental and emotional exertion required of the pilot to attempt a safe landing anywhere is substantial.

In the same way, cognitive and emotional capacity are like the two engines a leader needs to navigate challenges effectively. Without both engines functioning, the journey becomes much riskier.

What is emotional agility?

Quite simply, it’s the ability to remain adaptable in our thoughts and emotions, allowing us to respond effectively to daily situations. It acknowledges that we all experience a wide range of emotions, whether positive, negative, or neutral, which is a natural part of life. Being emotionally agile means approaching these emotions with a light touch and viewing them not as commands but as information to guide us in making choices aligned with our values.

Why is this important?

Emotionally dysregulated leaders can find themselves making decisions based on impulsive reactions rather than rational thinking. When emotions govern our actions without the filter of reason, mistakes are often the result. This can lead to hasty decisions that lack foresight and planning, affecting not only the leader but the entire team and organization. Teams led by emotionally reactive leaders often experience low morale, high turnover, and a toxic culture, as negative emotions ripple through the workplace.

Without emotional agility, leaders are also prone to confirmation bias, seeking information that supports their feelings and dismissing contradictory evidence. This can lead to poor strategic choices that ignore potential risks and miss opportunities.

In the end, cognitive agility alone can’t save a leader from the pitfalls of unchecked emotions.

An Example

I was once contacted by an executive we will call Sarah Thompson (this name is fictitious, as well as the name of the company and the industry, to protect confidentiality). Sarah, a seasoned executive, was at the helm of her family’s food business, Thompson Foods. Having grown from a modest local bakery to a multinational corporation, the business carried a rich legacy.

However, in recent years, it faced increasing competition, shifting consumer preferences, and internal conflicts. As CEO, Sarah was renowned for her cognitive agility, known for crafting innovative strategies and adeptly maneuvering the business through challenging waters.

Despite her strengths, however, Sarah struggled with emotional regulation. She often found herself overwhelmed by the weight of expectations, leading to emotional outbursts in meetings and critical conversations. Her mood swings left her team wary and hesitant to share insights. They feared triggering her wrath or disapproval.

Decisions made in haste and under stress became the norm, which led to a series of poorly executed product launches and growing frustration among senior executives. The morale at Thompson Foods dipped, and key members began considering their exit.

Recognizing the growing toll Sarah’s emotional volatility was taking on the organization, she reached out to me for guidance. In our initial assessment, we identified several patterns contributing to her challenges. Her inability to recognize emotional triggers and understand how they influenced her decisions was a key issue. She lacked tools to manage stress effectively, which escalated tensions in high-stakes situations.

Our work began with cultivating self-awareness.

Through structured exercises and reflective journaling, Sarah started to identify her triggers, like criticism from peers or unmet expectations.
We practiced mindfulness techniques to help her pause before reacting impulsively, allowing her to assess situations with a clear mind.
Over time, she learned cognitive reframing, which helped her view challenges from a constructive perspective, easing her sense of pressure.

Another significant aspect of our work was fostering empathy. I guided Sarah in improving her listening skills to better understand her team’s perspectives. Through role-playing exercises, she learned to respond calmly and constructively to differing opinions, helping to diffuse tension and build trust.

After several months of dedicated effort, Sarah exhibited remarkable transformation.

In meetings, she maintained composure, even when faced with challenging questions or disagreements.
This shift in demeanor encouraged her team to open up, share ideas, and collaborate more effectively.
Decision-making processes became more inclusive, leading to well-rounded strategies that harnessed the collective intelligence of the team.

Sarah’s newfound emotional agility had a ripple effect throughout the organization. Employee morale improved, and the rate of attrition slowed as trust was restored. Senior executives who had considered leaving decided to stay, invigorated by the positive changes in leadership. I received a note of thanks from one of her senior executives:

“It’s like night and day, here. I feel heard, respected, and I’m able to contribute.

What a difference! Thank you!” – PB

Thompson Foods soon regained its competitive edge, launching successful products that resonated with consumers and this brought the business back on track.

Sarah’s transformation into an emotionally agile leader not only saved the company from potential turmoil but also ushered in a new era of collaboration, innovation, and sustainable growth. The journey highlighted the profound impact of emotional agility in leadership, illustrating that leading with both the mind and heart can change the course of an entire organization.

Where do you need more emotional agility?

Are you able to harness the power of your emotions, allowing you to make sound decisions even in stressful situations? Mastering this enables you to stay in control of your executive function which is the part of your brain (your frontal lobe) that supports strategy, analytical skills, creativity and innovation, the ability to manage yourself well, and more.
Can you remain calm and collected, even in the face of adversity? This ability to manage emotions supports clear communication, better negotiation skills, and the ability to inspire confidence in others. It’s the foundation of safety and trust, fostering collaboration and innovation.
Are you able to be empathetic, recognizing the emotions and perspectives of your team? This allows you to navigate interpersonal conflicts deftly, build strong relationships, and motivate your team more effectively.

Developing emotional agility is a lifelong process. By committing to nourishing this within your leadership, you will enhance your cognitive agility, becoming more effective in decision-making, fostering healthier team dynamics, and building resilient organizations that thrive in any environment.

Patti Cotton

Patti Cotton reenergizes talented leaders and their teams to achieve fulfillment and extraordinary results. For more information on how Patti Cotton can help you and your organization, click here.

Confronting Elephants in the Room That Hold Your Executive Team Back

June 8, 2022 By Patti Cotton Leave a Comment

Aligning and coordinating your team in a strategic direction is paramount. However, as challenging as this might seem, it is easy compared to the conversations you and your team need to have around what will actually make the plan work.

Surprised?

So was our CEO, Michael.

He thought that setting a clear direction (see the article Getting Your Leadership and Company Out of the Weeds) and aligning and coordinating his executive team’s energies around this (see the article How to Align and Coordinate Your Team) would get them to “hit the ground running.”

Not so. In fact, his efforts had only been the first two of five important steps to becoming a high-performing team to meet the goals that matter most.

Aligning and coordinating his team revealed some deep, dark secrets that turned out to be what actually held his team back.

As a reminder, Michael had set a business imperative for the year as a first step to getting out of the weeds. He then took this to his executive team and asked each of them to consider their respective areas of responsibility as they drew up their own business imperatives to support the larger one. Recognizing that this would require some time, they agreed to meet the following week.

As they reconvene seven days later, let’s sit in on their conversation…

“Max,” I asked the COO. “You had a great question just before we adjourned our last meeting. You asked if redirecting the team’s energy around the business imperative would not require that we reexamine the other initiatives currently on your plates.”

“That’s right,” Max responded.

Candace, the CFO interjected. “Patti, I’m more interested in the shifts in behaviors you mentioned we would have to discuss.”

“Great kick-off to this meeting,” I responded. “If you will recall, I mentioned that you are all part of a system, and that all parts of the system need to work together in an aligned and coordinated way. This means not only having the same focus and organizing your efforts, but also confronting those things that hold you back from getting this done.”

“We are going to talk about what will hold you back from achieving the goals you have set together. I call these the “elephants in the room.” These are things that interfere with moving forward. And we are all well aware of them. But we don’t address them for various reasons.”

Max spoke up. “Like the fact that we probably won’t effectively address what to do with the other initiatives we have on our plates, because we just hope that by ignoring them, they will get done, anyway.”

“Right!” I said.

Michael spoke up. “And how about things take away from our focus?” He glanced at Candace. “For instance, employee problems that keep happening because we don’t want to confront them.”

“Well, if you are going to talk about this, then let’s talk about it,” bristled Candace. “Because if we are really going to surface these elephants in the room, then let’s talk about that employee situation to which you are probably referring, which occurred again last week.”

“That’s exactly what I’m talking about,” said Michael.

“Well,” Candace took a deep breath, “Would it surprise you to know that I feel you are the cause of that problem?”

The entire room fell silent.

“Okay,” said Michael. “I’m listening.”

Candace resumed. “I actually spent another two hours in HR last week over those two employees, only to find out that I couldn’t take action. Apparently, one of them had gone straight to you and gotten permission to do exactly what I had told him not to do. This happens a lot! So how do we handle that, Michael?”

“Now, we are talking,” I said. “We’ve just begun to reveal and confront some of the important things that are holding you all back.”

Michael sat back in his chair. “It sounds like I may be a chief culprit in keeping us in the weeds.”

“Well, I guess I can stand with you,” said Candace. “I’ve been avoiding this conversation for months.”

“Take heart, team,” I said. “This happens to the best of companies. The good news is, we can turn this around. The heart of successful change lies in identifying these behaviors and actions that hold us back – and in having the courage to confront them together.”

We spent the next two hours identifying main areas where shifts needed to occur. The team was subdued as they adjourned.

“Just a minute, team,” Michael paused. “I want to say a couple of things. First, I want to apologize for what I now know has held us back. I’m going to work very hard on making these changes. I’m thankful that you listened to the shifts I need to see in the team – and I’m very proud of you for speaking up today; for having the courage to confront me on what I need to do to support these changes.”

“I want to second the motion,” I shared. “And believe it or not, when we confront what is holding us back, this is when great things begin to happen. Let’s meet next week to pull this forward. It’s not enough to reveal the elephants – we need to up-level these behaviors to move past them.”

What are the elephants you need to confront in your executive team room? Next week, we will talk about how to up-level the behaviors and actions that hold you back so that you, too, can move forward.

Patti Cotton

Patti Cotton reenergizes talented leaders and their teams to achieve fulfillment and extraordinary results. For more information on how Patti Cotton can help you and your organization, click here.

Strengthening Culture with a Remote Workforce

April 22, 2020 By Patti Cotton Leave a Comment

How do you retain your company culture when you have a remote workforce?

Retaining who you are and what is important to you as a company is more challenging when you aren’t in the same physical space on a regular basis.

Yet, many companies with international teams and other remote situations have been successfully enjoying solid culture throughout their organizations for years.

How do they do it?

Intentionality.

The best companies know that culture is what makes or breaks them. Culture defines who you are as a company – your corporate identity. It sets the standard and tone for the way your workforce works together. It’s what gives people a shared identity – team, a sense of belonging. And it’s the glue that holds people together when the going gets tough.

But when people aren’t in the same physical environment on a daily basis, adopting and sharing the same tone and standards in thoughts, behaviors and actions can be challenging.

A remote or hybrid environment calls for being more “on purpose.” And this is not a bad thing. Many companies have lost their culture because they have simply taken it for granted. Setting intentionality is what will revive this, whether there is a remote component to your workforce or not.

Here are some things to consider as you seek to reinforce culture with a remote workforce.

1. Add virtual ways to share the company story and tell it often.

As you revisit your values, norms, and priorities in light of considering a remote and hybrid workforce, realize that the way you do things may change, but it doesn’t change who you are and what you stand for. At the same time, you will want to seek to make your company story memorable in creative ways more frequently and in different ways to emphasize identity. Look for seminal touchpoints to share this, such as announcing company-wide changes, annual meetings, company marketing collateral, and key celebrations. Include virtual ways to strengthen this, such as online meetings, video interviews and story markers in communications and at the bottom of email messaging, shared drives, and chat mechanisms.

2. Define what it means to live company values.

Most companies outline their values, but they do not take the time to define what these look like in action. For example, if one of your company core values is creativity, what should that look like in behaviors, actions, work, relationships, outcomes, etc.? You and your executive team should be firm on what all of your core values look like in action. Further, take the time to discuss what these might mean and how they might show up in a virtual or remote setting. Test these thoughts with your employees for feedback and buy-in – this is key. Then decide how you can weave this into your communications, your meetings and other touchpoints, and how to integrate this into your performance standards.

3. Communicate with greater intention.

This means not only increasing your communication, but heightening the way that you connect, such as using video when touching base virtually. Be sure that you set expectations around your communication methods and protocols so that this becomes part of your shared “way of operating.” Place greater emphasis on culture during your onboarding of new employees and leave time for discussion around this. Consider building in an accountability component for the direct supervisor of a new employee, ensuring that they have discussions around what your cultural markers are and how they show up in and at work. Devote intentional time for listening to the employees as well, especially in virtual meetings. Take the pulse on what their challenges are, what they are learning, and opportunities they see for improvements and working better together.

4. Reinforce the importance of each employee’s part in the company community.

Help your employees feel known and part of the team and help them to see how they fit into the bigger picture. Systematize some teambuilding exercises that help everyone to get to know them personally and vice versa, and that identify gifts each brings to the table for greater outcomes. A sense of inclusion and contribution is paramount. Be sure to capitalize on ways to recognize employees in both face-to-face and virtual settings for visibility, appreciation, and teambuilding. Consider cross-training or mentoring with different people to get to know others more rapidly across teams.

In your planning and process to define, strengthen and reinforce culture, please also remember that including your workforce in discussions at key points in various ways will pay great benefits. Allowing the entire employee base to give input means that they will also feel ownership and responsibility for the outcomes.

Patti Cotton

Patti Cotton reenergizes talented leaders and their teams to achieve fulfillment and extraordinary results. For more information on how Patti Cotton can help you and your organization, click here.

Leading with Greater Inner Agility

April 8, 2020 By Patti Cotton Leave a Comment

You are moving an entire business through uncharted waters right now. A lot of people are depending on you.

Grit isn’t enough to meet the challenges you are facing. You need to increase your inner agility in two ways to deal with the complexity occurring right now.

Owen, president of a manufacturing firm, reached out to me some time ago to help develop talent for the company’s succession planning.

“I’m tired,” he began. “And I think the company needs new blood. Can you provide executive coaching for my second in command?”

“I’d be pleased to help you, Owen,” I answered. “But if I can ask, why do you think the company needs new blood? You seem like you have more good years to give.”

“Truth be told, I’ve been perplexed by the business scene,” Owen answered. “Strategies that used to work don’t cut it. The challenges that we are presented with are new. I can’t refer back to anything I’ve dealt with before in order to create a roadmap out that makes sense.”

“Owen, you aren’t alone,” I responded. “Today’s business landscape is changing so fast that it’s hard to stay on top of what’s in front of you.”

“You aren’t kidding,” he shot back. “I can’t catch my breath. It’s one fire after another. I guess I’m just too old for this.”

“You aren’t too old, Owen. You are finding yourself in the same situation as most other executives right now. It’s time to increase your leadership’s ‘inner’ agility.”

“I’m ready for anything that helps me stay sane while I move this business forward,” he said. “Tell me more.”

“Well, there are two parts of inner agility,” I shared. “These are emotional and cognitive, and they both play a part in how well you make decisions and take actions. Emotional agility has to do with how well you manage your thoughts and emotions around your experiences. And cognitive agility has to do with your ability to make complex decisions.”

Owen and I talked for a bit about emotional agility and after exploring a bit, it seemed he was on top of things there. If you are interested in working on this particular aspect of agility, see the article Four Steps to Crisis Management.

We then talked about his ability to make complex decisions in light of the current business landscape, and this is where Owen admitted he was struggling. He had no past success he could reference as he confronted presenting challenges – the things that had worked in the past were not relevant.

I shared the following 5 steps to help him begin to develop greater cognitive ability:

1. Stand still while moving.

It’s important for a leader to find time for pause, but it feels impossible when the challenges keep coming non-stop. Yet, pausing is what provides self-awareness, reflection, and a moment to replenish one’s emotional and mental stores. Some executives practice breathing meditations, journaling, a walk around the building once or twice daily, or another habit that creates a moment where they can regroup.

2. Adopt uncertainty.

We are creatures of comfort, and when challenges arise, we run to what feels familiar and safe. Yet, with the world’s volatility and its effects on business, we must learn to embrace what feels new and trade in the hat of “expert” for that of “explorer.” If you find yourself using language like, “When this is all over,” think again. Our mindsets and rhetoric need to change to, “Let’s explore this challenge!”

3. Change Up Your Questions.

Begin by asking yourself where you need to go. Avoid gravitating to “how do we do this?” too soon, and replace this impulse with “What if we could…?” By remaining in the visionary portion of your questioning for a longer brainstorming period, you can begin to think outside the box about the way to accomplish it at a later time. Involve your greater management team and line employees. Tell them what you want to accomplish and get their feedback about what they think needs to change in order to accomplish this. And don’t be afraid to ask, “What am I missing?” Be open to thinking about different ways of moving forward and accomplishing your goals.

4. Focus on the journey, not the destination.

The destination you head for today may not be there tomorrow. Set shorter-term strategies to continue supporting your customers and their current needs, using your values as the foundational rudder that keeps you, the team and the organization grounded in who you are and what you are about.

5. Work on the who of your personal leadership and not the how.

Hard skills and competencies are no adequate to support the business of tomorrow. Your leadership character – your personal values and integrity – along with your agility to move through the unfamiliar – will be what count now and in the future.

I was pleased that Owen decided to work on his inner agility, focusing on the cognitive piece, to help move the company forward. As we shouldered this together, he became more confident, able to read the business landscape and connect the dots to make complex decisions, and at the same time, reported that he was less stressed than he had been in years.

Now is the time to step away from old habits to embrace the new and uncertain as exciting, uncharted territory, full of promise. The landscape continues to shift and evolve. How about you?

The Clockwork of Excellent Leadership: 3 Essential Gears

What makes up excellent leadership? The essential components that go into leadership must all work together, or they begin to wear on one another and bring things to a stop. Learn how to keep them running like clockwork. Sign up to receive the complimentary infographic.

Patti Cotton

Patti Cotton reenergizes talented leaders and their teams to achieve fulfillment and extraordinary results. For more information on how Patti Cotton can help you and your organization, click here.